How to Match a Vendor Credit in Quickbooks Online


How to Match a Vendor Credit in QuickBooks Online

Managing vendor credits is an important part of maintaining accurate financial records in QuickBooks Online. A vendor credit is created when a vendor owes you money or has issued a credit memo for returned goods or services. Matching vendor credits in QuickBooks Online ensures that your accounts payable balance is up to date and reflects the correct amount owed to vendors. Here is a step-by-step guide on how to match a vendor credit in QuickBooks Online.

Step 1: Access the Vendor Credit Section
Go to the Navigation menu on the left-hand side of your QuickBooks Online dashboard. Click on “Expenses” and then select “Vendors.” Choose the vendor you want to match a credit for.

Step 2: Review Vendor Credits
Under the “Vendor Credits” tab, review all the available vendor credits. Verify that the credit you want to match is listed.

Step 3: Match the Credit
Click on the vendor credit you want to match. Verify that the credit amount matches the amount you owe the vendor. If it does, click “Make Payment” or “Create Expense” to apply the credit to an existing bill or create a new expense.

Step 4: Apply the Credit
In the “Make Payment” or “Create Expense” window, select the bill you want to apply the credit to. QuickBooks will automatically reduce the amount you owe to the vendor by the credit amount. Review the details and click “Save and Close” to complete the process.

FAQs:

1. Can I apply a vendor credit to multiple bills?
Yes, you can apply a vendor credit to multiple bills as long as the credit amount is sufficient to cover the total outstanding amount.

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2. What if the credit amount exceeds the bill amount?
If the credit amount exceeds the bill amount, QuickBooks will automatically create a new vendor credit for the remaining balance.

3. Can I match a vendor credit to an open purchase order?
No, vendor credits cannot be matched directly to open purchase orders in QuickBooks Online. You need to apply the credit to a bill instead.

4. Can I match a vendor credit to a bill from a different vendor?
No, vendor credits can only be matched to bills from the same vendor. If you have a credit from a different vendor, you need to create a separate expense transaction.

5. Can I delete a vendor credit?
Yes, you can delete a vendor credit if it hasn’t been applied to any bills. Simply go to the vendor credit list, select the credit, and click “Delete.”

6. How do I know if a vendor credit has been matched correctly?
You can run a vendor balance detail report to see if the credit has been applied to the correct bill. Go to “Reports,” search for “Vendor Balance Detail,” and customize the report to include the vendor and date range.

7. What if I mistakenly apply a vendor credit to the wrong bill?
If you apply a vendor credit to the wrong bill, you can unapply it and apply it to the correct bill. Go to the vendor credit list, select the credit, and click “Unapply.” Then, apply the credit to the correct bill using the steps mentioned earlier.

Matching vendor credits in QuickBooks Online ensures accurate accounts payable records and helps you keep track of outstanding balances owed to vendors. By following the steps outlined in this article, you can easily match vendor credits and maintain the accuracy of your financial records.